Posted: Fri Jan 30, 2009 8:53 am Post subject: Donations, Question.... 503(c)
Is the NeoOffice Project a 503(c) non-profit organization? _________________ Wisdom from IRC:
Man watching 6 MSCE's around a sun box, looks alot like the opening scene's of 2001:space odyssey and the monkey's with the monolith.
Posted: Fri Jan 30, 2009 9:38 am Post subject: Re: Donations, Question.... 503(c)
sirloxelroy wrote:
Is the NeoOffice Project a 503(c) non-profit organization?
I think you mean a 501c(3)? If so, the answer is no. Applying for and obtaining approval from the U.S. Internal Revenue Service is a very time consuming and expensive process. AFAICT, the only reason to seek 501c(3) is to allow your U.S. donors to list their donations as a tax deductible expense on their tax returns. The theory is that by making them tax deductible, people will donate large amounts.
However, given that the average donation is very small ($5 to $10) and that less than half of our donors are in the U.S., I doubt that this theory will hold. Also, it is likely to be difficult to obtain 501c(3) approval as, from a tax perspective, our donations aren't anything like real donations and, instead, is likely to be classified as optional payments for a software product.
While individuals cannot deduct their donations on their U.S. taxes, for businesses in many countries, a donation to NeoOffice (since your business is donating to ensure that we continue developing and supporting the software that your business uses) is a tax deductible business expense.
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